EUR/USD outlook: Euro returns to red after post-US data rally failed to hold gains
|EUR/USD
The Euro lost traction and dipped near 1.0900 support in European trading on Wednesday, after Tuesday’s rally on downbeat US data failed to sustain gains.
Fresh weakness of sterling on disappointing UK construction PMI (Sep 43.3 vs 45.0 f/c) dragged the single currency lower.
Daily techs remain in full bearish setup and favor fresh probe below 1.09 handle and renewed attack at 1.0863 target (Fibo 76.4% of 1.0340/1.2555 ascend), break of which will unmask supports at 1.0820/00 (24 Apr low / round-figure support).
Falling 10DMA which tracks the action in past two weeks, marks pivotal barrier at 1.0960, break of which would sideline immediate downside threats and signal further recovery.
Today’s presentation of final Brexit plan and US ADP private sector employment report are key events and expected to provide stronger direction signals.
Res: 1.0942; 1.0960; 1.1000; 1.1016
Sup: 1.0900; 1.0878; 1.0863; 1.0820
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